United Arab Emirates, 29th April 2014: Companies across the United Arab Emirates (UAE) are recognizing the need to introduce new measures and are starting to shift their budget allocation to employee allowances and benefits. This is according to the latest GCC Allowances and Benefits Survey conducted by Aon Hewitt, the global talent, retirement and health solutions business of Aon plc (NYSE: AON).
The largest report of its kind in the GCC, the Aon Hewitt Allowances and Benefits Survey is based on an analysis of over 100 companies across different sectors. The findings revealed that:
- Education assistance allowance has increased by almost 30%, and now ranges between US$8,000 to US$12,000 per child across job roles.
- Education assistance eligibility has also increased dramatically, with almost half of the companies across the UAE now providing children’s education assistance not only to management but also to other staff.
- Housing allowance in the UAE remains relatively stable across all job roles ranging from US$20,000 to US$53,000 despite rental prices across the country increasing in excess of 20% over the past year - higher than any major global market.
- Housing allowance in the UAE and Qatar is in the region of 35-40% of basic pay; this is usually only 25% for the rest of the GCC.
Robert Richter, Compensation Survey Manager at Aon Hewitt Middle East, said: “Since the announcement of the Dubai EXPO 2020 win, the cost of living in Dubai has been high on the agenda. The momentum sustained by the announcement as well as the rapid infrastructure development has seen rental and purchase prices start to rise again to pre-crisis levels – all the while housing allowances have stayed the same. At Aon Hewitt we help companies attract and retain the right talent and inevitably some companies will not be able to afford to keep up with the change in demand, resulting in the migration of talent between organizations. However, we do anticipate that organizations will start revising their allowances such as housing in the interest of talent retention.”
The most commonly provided allowances and benefits in the GCC are housing, transportation, children’s education assistance and home leave benefits. Housing and transportation is typically provided on a monthly basis as a cash payment; children’s education and home leave benefits are usually provided at actual cost of the school fees or the cost of the ticket respectively.
The average given for housing allowance and children’s education assistance across the GCC is currently highest in Qatar, averaging US$37,000 and lowest in Oman at US$28,500
|
Housing Allowance |
||
|
Country |
Start Range |
End Range |
|
Qatar |
21,000 |
53,000 |
|
UAE |
20,000 |
53,000 |
|
Saudi Arabia |
16,000 |
53,000 |
|
Bahrain |
15,000 |
56,000 |
|
Kuwait |
14,000 |
46,000 |
|
Oman |
13,000 |
44,000 |
|
Children’s Education Assistance |
||
|
Country |
Start Range |
End Range |
|
Qatar |
8,000 |
17,000 |
|
UAE |
8,000 |
12,000 |
|
Kuwait |
7,000 |
16,000 |
|
Bahrain |
7,000 |
12,000 |
|
Oman |
5,000 |
9,000 |
The report also measures, furniture and relocation allowance, end of service benefits, life and accident assurance, long term disability, private medical benefits, loans, mobile phones, home leave benefit and annual leave entitlements.
To purchase the full report please contact Aon Hewitt on: (971) 43896300.
About Aon Hewitt
Aon Hewitt empowers organizations and individuals to secure a better future through innovative talent, retirement and health solutions. We advise, design and execute a wide range of solutions that enable clients to cultivate talent to drive organizational and personal performance and growth, navigate retirement risk while providing new levels of financial security, and redefine health solutions for greater choice, affordability and wellness. Aon Hewitt is the global leader in human resource solutions, with over 30,000 professionals in 90 countries serving more than 20,000 clients worldwide.
For more information on Aon Hewitt, please visit www.aonhewitt.com.
About Aon
Aon plc (NYSE:AON) is the leading global provider of risk management, insurance and reinsurancebrokerage, and human resources solutions and outsourcing services. Through its more than 66,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovativeand effective risk and people solutions and through industry-leading global resources and technical expertise. Aon has been named repeatedly as the world’s best broker, best insurance intermediary, reinsurance intermediary, captives manager and best employee benefits consulting firm by multiple industry sources. Visit www.aon.com for more information on Aon andwww.aon.com/manchesterunited to learn about Aon’s global partnership and shirt sponsorship withManchester United.
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